The beginning of the year is the best time for gift giving when it comes estate plans. For those Arkansas residents who are thinking about making estate planning gifts, they should do so now. Very few estates are taxable under the law as it now stands, but there are other reasons annual giving makes sense. One of the greatest reasons to give gifts while still alive is the ability to see how they positively affect the lives of those who receive them.
Gifting money will also allow a testator to see how a potential beneficiary handles money and may sway the decision to leave that person something in a will. Someone who squanders funds may not do well getting a lump sum. Perhaps a trust would be better. Also, if gifting someone with property that produces income, giving it at the beginning of the year rather than at the end transfers income to people who may be in lower tax brackets.
An gift tax exclusion that is calculated annually can be better utilized early in the year as well. A person can gift a certain amount per annum without it being counted against a gift tax and lifetime estate exclusion. This year, that limit is $15,000 per person. In other words, a gifter can give gifts up to $15,000 to as many people as he or she would like in any given year.
There are so many matters enmeshed with estate planning. An Arkansas attorney is able to provide guidance to those residents who are thinking about gifting and any legal implications that may be involved. A testator can even give medical or educational gifts. A lawyer will be able to present a client with additional information about where gift money can be utilized.